Abrdn ‘to axe hundreds of jobs’ in £150m cost cutting

Abrdn CEO Stephen Bird

Edinburgh-based investment giant Abrdn is planning to axe hundreds of jobs as part of a move to cut about £150 million in costs.

Sources said Abrdn is planning to cut up to 10% of its workforce of nearly 5,000 people.
The job cuts could be announced alongside a trading update from Abrdn on Wednesday, January 24.
Investment trade publications reported that the job cuts will mostly affect so-called “back office” roles.
On December 18, Abrdn confirmed reports that it has slashed employee benefits as part of a round of cost cuts.
The cuts in employee benefits included the halving of redundancy payouts and a reduction in the length of paid parental leave by about a third.

Abrn is introducing a 52-week cap on redundancy payments from this month — and from June these payouts will be dropped from four to two weeks per year of service.

Paid parental leave is being cut from 40 to 26 weeks with effect from October, 2024, after employees lobbied to have the date pushed back from April.

A policy that allowed a phased return from parental leave on full pay over three months will also be axed from October, 2024.

In August, Abrdn said its assets under management and administration slipped 1% to £496 billion in the first half of 2023 as it reported net outflows “excluding liquidity” of £4.4 billion.

Abrdn said positive flows of £1.9 billion at its Interactive Investor (ii) business were “offset by outflows” in its investments unit and adviser business.

Abrdn said its first-half net operating revenue was 4% higher at £721 million with growth in its adviser and personal businesses offsetting lower revenue in its investments division.

Adjusted operating profit for the first half was up 10% to £127 million, but Abrdn reported IFRS loss before tax of £169 million (H1 2022: loss £326m) “largely driven by the fall in market value of our listed stakes.”